Major Functions of Budget Division

Functions of Budget Division

The Budget Division is responsible for the preparation and submission to Parliament of the Central Governments Budget other than Railways, as well as the supplementary Demands for Grants and
Demands for Excess Grants. The Budget and Supplementary and Excess Demands of State and Union Territories under the Presidents Rule are also dealt with in this Division. Besides, this Division is responsible for dealing with all issues relating to Public Debt, market loans of the Central Government and the fixation of terms & conditions of lending by the Central Government, fixing the administered interest rates and keeping a watch on the Ways and Means position of the Central Government The Division also deals with the matters relating to National Savings Organisation and Small Savings Schemes, Duties, Powers and Condition of Service of the Comptroller and Auditor General of India, Accounting procedures and Classification, dealing with issues relating to National Defence Fund, Railways Convention Committee and Central Road Fund.

Budget Division also performs the functions in relation to the administration of Fiscal Responsibility and Budget Management (FRBM) Act, 2003, as Amended in 2012 and the Rules framed thereunder.

2. The work relating to Treasurer Charitable Endowment is also handled in the Budget Division. The Charitable Endowment Act, 1890 provides that where property is held or is to be applied in Trust for charitable purposes, the Central Government, if it thinks fit, may, on application made, order that the property be vested in a Treasurer Endowments on such terms as to the application of the property or the income there of as may be agreed on between the Government and the persons(s) making the application. Presently, this appointment is held by Deputy Secretary/Director (Budget).

3. The Budget Division functions under the supervision of Joint Secretary/Addl. Secretary (Budget) and comprises of the following Sections/Units whose functions have been summarised briefly:

Accounts Section

Coordination Section

Demands Section

FRBM Cell

National Savings - I

National Savings - II

Public Debt Section

Reports Section

States Section

Supplementary Demands Section

Way and Means Section

Budget Press

Hindi Section I to IV

4. In addition to work of routine administrative nature, sections at S.No.1-10 deal with all budgetary matters pertaining to Demands for Grants and allied subjects of different Ministries/Departments of Central Government. The major work undertaken in the Budget Division relates to the Scrutiny of Receipt and Expenditure Estimates in the process of preparation of Budget Estimates and Revised Estimates, and related Statements, Annexes of the various budget documents. The detailed estimates of receipts and expenditure are prepared by the Ministries/Departments in the prescribed forms and furnished to the concerned Sections in the Budget Division. These estimates are scrutinised in detail and further consolidated as part of process of compilation of the Budget and related documents, which are being briefly described below.

Section wise Work allocation and Functions in the Budget Division along with Contact details.

I. Accounts Section:

Responsibilities:

Dealing with all issues relating to the Accounting of Government transactions of the Ministries/Departments arising out of various Constitutional provisions and Acts of Parliament;

Accounting classification and procedures including Reforms in Budget and Accounts;

Vetting of the Accounting Procedure and the operation of approved funds in respect of external assistance (in cash or in kind) drawn up by Controller of Aid Accounts and Audit before obtaining concurrence of C&AG;

Matters relating to Conventions governing the financial relationship between the General Revenues and Posts &Telecommunications/Railways are also dealt with in this Section;

Matters relating to "New Service"/"New Instrument of Service"

Railway Convention Committee including Railway Safety Works Fund;

Computerisation of Budget documents;

Gender Budgeting.

II. Coordination Section

Responsibilities:

Performance Budget Coordination with Ministries/Departments.

Gross Budgetary Support for Annual Plans/ Plan Coordination. Plan portion of Expenditure Budget and Budget at a Glance.

Expenditure Budget Coordination.

Non-lapsable pool for North-Eastern Region

III. Demands Section

Responsibilities:

Demands Section maintains the list of Demands as reflected from time to time through various amendments to the Allocation of Business Rules (involving reorganization of Ministries/Departments);

The format of the Demands for Grants and its accompanying annexes as per the recommendations of the Estimates Committee/Public Accounts Committee;

Coordinate the work of compilation of Demands for Grants of all the Ministries/Departments;

Coordinates the printing of Demands for Grants;

Presentation of all the Budget documents in Parliament and the legislative work relating to Vote on Account and main Appropriation Bills.

Compiling and issuing the Budget Circular and monitoring the timely receipt of Budget estimates;

Examining the proposals received from Ministries/Departments during the year for opening of new sub head/s, detailed head/s and object head/s of accounts in Detailed Demands for Grants and corrections in Detailed Demands for Grants whenever needed after the Demands for Grants are passed by Parliament.

IV. Fiscal Responsibility and Budget Management Cell

Responsibilities:

Administration of Fiscal Responsibility and Budget Management Act (FRBM), 2003 and the Rules framed thereunder. The Act seeks to provide for the responsibility of the Central Government to ensure inter-generational equity in fiscal management and long-term macro-economic stability by achieving sufficient revenue surplus and removing fiscal impediments in the effective conduct of monetary policy and
prudential debt management consistent with fiscal sustainability through limits on the Central Government borrowings, debt and deficits, greater transparency in fiscal operations of the Central Government and conducting fiscal policy in a medium-term framework and for matters connected therewith or incidental
thereto.

In compliance with the relevant provisions of the FRBM Act and Rules framed thereunder, FRBM Cell performs following important functions.

Preparation of FRBM Report, which contains three policy statements, such as Medium Term Fiscal Policy Statement, Fiscal Policy Strategy Statement and Macroeconomic Framework Statement. This report is presented in the Parliament along with the Annual Financial Statement and Demands for Grants.

Preparation of Medium Term Expenditure Framework (MTEF) Statement as required under Amended FRBM Act, for presentation in both Houses of Parliament, immediately following the session of the Parliament in which the budget has been presented.

Preparation of Statements on quarterly review of the trends in receipts and expenditure in relation to the budget.

Preparation of Disclosure Statements such as Asset Register, Tax Revenue Raised but not Realised and Arrears of Non-Tax Revenue. These statements are meant for inclusion in Receipts Budget.

Advising Department of Posts and RBI/Public Sector Banks on execution of the various schemes indicated above

Payment of remuneration to the Department of Posts/ Banks for the agency function;

All matters relating to management and control of National Small Savings Fund(NSSF). Including monitoring of Small Savings collections; sanction of amounts invested in special securities of State/UT (with Legislature) Governments against Small Savings Collections, Policy matters relating thereto etc.

Policy matter relating to National Savings Central Advisory Board and Standing Committee on National Savings;

Co-ordinating Small Savings Publicity, Designing & Promotion;

Constitution of Expert Group on Small Savings, Expert Group on remuneration to Department. of Posts and functioning as their Secretariat and processing of their recommendations;

Court Cases, Parliament Questions relating to all aforesaid matters;

Formulation of budget relating to:

National Small Saving Fund, including Small Savings collections

Transfers to State/UT Governments against net Small Savings Collections

Interest on Small Savings Deposits, Savings Certificates, Public Provident Fund and Deposit Schemes for retiring employees;

Remuneration payable to Department of Posts for their agency function and payment to banks for operating PPF and Deposit Schemes for retiring employees;

VII. Public Debt Section

Responsibilities:

Administration of Government Securities Act, 2006 and Regulation framed there-under through Reserve Bank of India.

Legislative business connected with the Management of Public Debt;

Cash Management in Central Government;

Fixation of Interest rate of GPF and similar funds, including Special Deposit Scheme, 1975;

Fixation of Interest Rates of Loans and Advances sanctioned by Central Government to (a)States/Union Territory Governments, Public Sector Enterprises etc. (b) Rate of Interest to be charged on advances to the Government servants for purchase of conveyance, (c) Average rate of interest to be charged on Capital Outlay on Commercial Departments and (d) Advances to Government servants Rates of interest on House Building Advance;

VIII. Reports Section:

The duties, powers and conditions of service of the Comptroller and Auditor General of India are governed under an act of the Parliament viz., C&AGs (Duties, Powers and Conditions of Service) Act, 1971. This Section deals with the administration of this Act. Proposals for entrustment of audit of non-government Bodies and Authorities to the C&AG of India under Section 19(3) and Section 20 ibid are also dealt with in this Section. In pursuance of Article 151 of the Constitution, the Reports of the Comptroller and Auditor General of India, relating to the Accounts of the Union Government are received in this section. The reports are reviewed and the important points made therein are brought to the notice of the Finance Minister. All legislative work connected with laying the Reports in Parliament are handled in this Section.

This Section also deals with and coordinates action on such recommendations/observations contained in the Reports of the PAC as well as those of the other Parliamentary Committees which directly and exclusively concern the area of work handled in Budget Division. Report Section coordinates collection of material from all Departments under Ministry of Finance and handles related activities to bring out the Annual Report of Ministry of Finance and present to Parliament. Distribution of Annual Report to various Government agencies is also handled by this Section.

Responsibilities:

Administration of the C&AGs (Duties, Powers and Conditions of Service) Act,1971.

Proposals for entrustment/re-entrustment of audit of non-Government Bodies and Authorities to the C&AG of India under section 19(3) and section 20 of the C&AGs(DPC) Act,1971.

Processing the Audit reports of the C&AG of India relating to the Accounts of the Union Government and laying them in both Houses of Parliament in pursuance of Article 151 of the Constitution of India after obtaining approval of the President of India.

Coordination work on such recommendations/observations contained in the Report of the PAC as well as
other Parliamentary Committees that directly and exclusively concern the Budget Division.

Coordination of O&M matters of the Budget Division.

Preparation and laying of the Annual Report of the Ministry of Finance in Parliament.

Matter relating to National Defence Fund.

Budget related work of 14 Demands for Grants, Parliament Questions and VIP references relating to the 14 Demands for Grants allocated to this Section.

IX. States Section:

Responsibilities:

Release of States share of Central Taxes, and duties to State Governments arising out of the recommendations of Finance Commission,

Work relating to the Constitution of the Finance Commission and processing of their reports,

Monitoring and review of repayment of Central loans and payment of interest by State Governments,

Processing and presentation of Budget and Supplementary Demands for Grants to Parliament in respect of States under Presidents Rule,

Non-tax Revenue of the Central Government-finalization and compilation of estimates thereof.

Coordination with Department of Revenue for finalization and incorporation in Revenue Receipt Budget, of the estimates in respect of States share of Tax Revenues of the Central Government. Budget Documents.

X. Supplementary Demands Section

This Section is concerned with the coordination and presentation of Supplementary Demands for Grants and Demands for Excess Grants and the connected Parliamentary work. Other activities of the Section relate to administration of the Contingency Fund of India Act and Rules framed there under. This Section is also
concerned with the overall policy related to Central Government Guarantees/Guarantee Fee and Estimates of Loan Repayments and Interest Payments in respect of Public Sector Units/Financial Institutions.

Responsibilities:

Supplementary Demands for Grants;

Demands for Excess Grants;

Central Government Guarantees/Guarantee Fees;

Estimates of Loan Repayment/Interest Payments in respect of PSUs/FIs;

Administration of Contingency Fund of India Act/Rules.

XI. Ways & Means Section:

Responsibilities:

Resources and Ways and Means of Central Government

Market Loan by Central Government

Treasury Bills and deficit financing

Cash Balance Investments

Bonds issued by the Government of India (viz. Relief Bonds/Savings Bond)

XII. Budget Press:

Responsibilities:

Printing of all Budget documents relating to the Union Budget including Detailed Demands for Grants of the Ministry of Finance and Supplementary Demands for Grants.

Printing of all Budget documents of States under the President's rule;

Printing of Urgent and classified documents relating to the various departments of the
Ministry of Finance; and

Printing Jobs of other Ministries/Departments subject to the exigencies of urgent work
of Ministry of Finance.

XIII. Hindi Sections: I - IV

Responsibilities

The Hindi Branch is primarily concerned with the work of preparing, printing and publishing the Hindi version of the Budget documents i.e. Demands for Grants, Receipt Budget, Summary of Demands for Grants, Expenditure Budget Vol. 1 and 2, Key to Budget Documents, Budget-at-a-Glance, Annual Budget Statement, Vote on account, List of Demands, State Budgets, Supplementary and Excess Demands for Grants, Budget Speech of the Finance Minister including Economic Survey before the presentation of the Annual Budget in the Lok Sabha;

It is also responsible for undertaking all other eligible translation work of the Department of Economic Affairs which may be entrusted to it by the Divisional Officer concerned;

Translation of papers like agreements to be signed simultaneously in Hindi, replies to Parliament Questions including SNQs, Call Attention Notices of the Motions, briefs for Consultative Committee, Monthly Summary for the Cabinet, Letters etc.;

Preparing the Hindi version of various documentary reports submitted by commissions constituted by government to go into matters relating to other pay and allowances etc. of Government Servants, reports of the Finance Commission, and the other reports relevant to matters concerning the Ministry of Finance
including those submitted by Commissions of Inquiry appointed under the Commission of Inquiry Act, 1952.